Big Pharma Paid $690 Million in Secret Royalties to Fauci’s NIH During Pandemic

An explosive investigation has revealed that Big Pharma funneled hundreds of millions of dollars in secret royalties to the National Institutes of Health (NIH) and its scientists, including Dr. Anthony Fauci, during the pandemic years. These payments have raised significant ethical concerns and calls for transparency.

According to a watchdog group more than $350 million in royalties were paid by pharmaceutical companies to NIH and nearly 1,700 of its scientists between 2010 and 2020. The group’s investigation, which relied on documents obtained through a federal lawsuit, indicates that Dr. Fauci received 23 royalty payments, while former NIH Director Dr. Francis Collins received 14 payments during this period​.

The royalty payments were made to NIH scientists credited as co-inventors on various treatments and pharmaceutical products. These payments are seen as potential conflicts of interest, given the NIH's significant role in regulating and approving drugs. Despite the substantial amounts involved, details about the specific payments and their amounts have been heavily redacted by the NIH, sparking further controversy and accusations of secrecy​.

During the COVID-19 pandemic, these royalty payments continued, with Big Pharma allegedly paying $690 million to NIH through third-party mechanisms. This period saw an unprecedented level of collaboration between the federal government and pharmaceutical companies, particularly in the rapid development and distribution of COVID-19 vaccines​.

The NIH’s reluctance to disclose full details about these payments has led to legal battles. The agency initially refused to acknowledge OpenTheBooks.com’s Freedom of Information Act (FOIA) request, prompting the watchdog group to sue. Under court order, the NIH has begun releasing documents, albeit at a slow pace of 300 pages per month, and with significant redactions​.

Critics argue that the lack of transparency undermines public trust, especially when federal officials who influence public health policies receive undisclosed financial benefits from private companies. The investigation found that royalty payments from Big Pharma to NIH scientists are not a new phenomenon. An earlier AP investigation in 2005 revealed that 900 NIH scientists had received $9 million in royalties for work on inventions funded by NIH grants, including Dr. Fauci, who received over $45,000 for an experimental AIDS treatment​​.

Senator Rand Paul has been a vocal critic, pushing for legislation to mandate full disclosure of such payments. He argues that these financial ties could compromise the objectivity of NIH officials when making critical health decisions affecting millions of Americans​.

As the debate over the ethics and transparency of these payments continues, there is growing pressure on the NIH and other federal agencies to fully disclose their financial dealings with pharmaceutical companies to ensure accountability and maintain public trust in federal health institutions.